Palestinian Authority Requests Supreme Court Block on $655M Terror Judgment
Palestinian Authority asks Supreme Court to stop $655 million terrorism damage payment.
Why it matters: This case tests limits on foreign sovereign immunity and enforcement of terrorism damage awards in U.S. courts, impacting legal and diplomatic precedents.
- July 30, 2026: Palestinian Authority and PLO petition Supreme Court to freeze $655.5 million judgment from 2004 Jerusalem terror attacks.
- 2015: Jury awarded $218.5 million to victims, tripled to $655.5 million under the U.S. Anti-Terrorism Act.
- March 2026: Second Circuit reinstated judgment after Supreme Court upheld 2018 Anti-Terrorism Clarification Act expanding jurisdiction.
- Case involves key questions on sovereign immunity and enforcement of judgments against foreign entities operating with U.S. support.
On July 30, 2026, the Palestinian Authority (PA) and Palestine Liberation Organization (PLO) petitioned the U.S. Supreme Court to block enforcement of a $655.5 million judgment awarded to American victims of terror attacks in Jerusalem in 2002-2004.
The original lawsuit, filed in 2004, sought damages for 33 people killed and hundreds injured in attacks attributed to Palestinian militant groups. A jury awarded $218.5 million in 2015. This amount was tripled under the Anti-Terrorism Act, increasing the total to $655.5 million.
The U.S. Court of Appeals for the Second Circuit initially vacated the award in 2016, ruling the courts lacked personal jurisdiction over the PA and PLO. To address this, Congress passed the Anti-Terrorism Clarification Act of 2018 (ATCA), clarifying that U.S. courts may hear cases against foreign entities receiving U.S. support or operating U.S. facilities.
In 2025, the Supreme Court upheld ATCA in a key ruling, finding jurisdiction appropriate under the clarified law. Following this, the Second Circuit reinstated the $655.5 million judgment in March 2026, allowing victims to pursue enforcement.
The PA now argues enforcing the payment immediately would harm public services and destabilize security in the West Bank. They cite risks to civilians and ask the Supreme Court to halt payment until further review.
This dispute spotlights sovereign immunity—a legal principle protecting foreign governments from being sued in U.S. courts—and how exceptions to this protection apply in terrorism cases. The case challenges how courts balance victims’ rights to recover damages against foreign entities' claims to legal immunity and the broader impact on international relations.
Experts from Lawfare and Law360 note the Supreme Court's ruling will shape enforcement of terrorism judgments and sovereign immunity standards in future cases. It will also influence legal strategies for governments and entities operating under complex international law.
By the numbers:
- $655.5 million — total damages awarded to American terror victims, tripled under the Anti-Terrorism Act
- 33 — number of victims killed in Jerusalem terror attacks underpinning the lawsuit
- 2018 — year the Anti-Terrorism Clarification Act was passed, expanding U.S. court jurisdiction
Yes, but: While the Anti-Terrorism Clarification Act allows broader jurisdiction, foreign entities contend enforcement disrupts peace and essential services, highlighting tension between legal remedies and geopolitical consequences.
What's next: The Supreme Court is expected to decide whether to grant a stay on enforcement by late 2026, with a full ruling on the merits anticipated by 2027.